Real Estate This Diwali
For Diwali in invest plus
why you should invest in Real estate this Diwali and save up to 35 lakhs
Investments in real estate hardly go wrong, as they invariably fetch good returns. For people who buy property during the festive season of Diwali, this reinforces the belief that Diwali is an auspicious period to make investment in property!
Diwali , the festival of light, is considered to be an auspicious period to buy property.
Investment in real estate remains a most profitable proposition in India, particularly in an expanding region like the National Capital Region (NCR) of Delhi. Overall returns in the long term, say around 15 years, is almost 15-20 % compounded annually. These kinds of returns are not possible from any other asset class.
The general perception that prices in Delhi or Gurugram have already gone very high and any investment at this level would not fetch a good return is not true if you analyse the past performances of investments in real estate.
If you see past record, in the long term the high-price level gets evened out and the overall returns from investments in real estate remain high.
The other important factor that might boost the returns is the high probability of softening of interest rates in the near future. As soon as the interest rates fall, capital value of residential real estate increases.
If you have borrowed money to buy a property at variable rates, when the rate falls, your interest burden will also come down. But the appreciation in the value of the property will continue to remain. Therefore, experts say that it is not advisable to wait for prices to correct if you want to buy a Retail shop / Service Apartment either to live or for investment purpose.
Interestingly, the rentals in the NCR have soared in the last couple of years substantially. If you take the rental income into account, the net investment made by you to buy a Retail shop / Service Apartment the is even less; also, the rental income has increased in the last couple of years.